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Updated almost 9 years ago on . Most recent reply
For a Solo(k), is rental income equal to self-employment Income?
I apologize if this has already been answered. I tried searching for the answer to my question, but was unable to find it.
I just finished reading the BP book on tax strategies and am interested in setting up a solo 401(k). One of the requirements is that there must be self-employment income. I don't sell, flip, wholesale, or have any other income that would be schedule C. I have 17 units that generate rental income. I know that rental income isn't subject to self-employment taxes, but is it considered self-employment income for purposes of funding a solo(k)? I appreciate your help.
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- Solo 401k Expert
- Anaheim Hills, CA
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No, rental income is considered to be passive income. You need active (earned) income.
- Dmitriy Fomichenko
- (949) 228-9393
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